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Title: A large open economy has desired national saving of S to power of ((d)) = 1200 + 1000r to power of (
Post by: johnpaul92 on Jan 30, 2016
A large open economy has desired national saving of S to power of ((d)) = 1200 + 1000r to power of ((w)), and desired national investment of I to power of ((d)) = 1000 - 500r to power of ((w)). The foreign economy has desired national saving of S and ((d) over (For)) = 1300 + 1000r to power of ((w)), and desired national investment of I and ((d) over (For)) = 1800 - 500r to power of ((w)). Suppose the foreign country's government increases its spending by 300 and private saving does not change. Then in equilibrium, the foreign country has net exports equal to
A) 500.
B) -350.
C) 350.
D) -500.


Title: Re: A large open economy has desired national saving of S to power of ((d)) = 1200 + 1000r to power
Post by: supaman on Feb 4, 2016
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Title: Re: A large open economy has desired national saving of S to power of ((d)) = 1200 + 1000r to power of (
Post by: johnpaul92 on Feb 13, 2016
Wow, you answered what I thought was impossible to answer, thank you!